December 2010
- Editorial
- Legal update
- Choices in arbitration: users' survey
- Dispute resolution in London
- Jivraj developments
- New UNCITRAL rules
- Noticeboard
- Focus on London: Professor Robert Merkin
English courts refuse to enforce French IC award
In Dallah Real Estate v The Government of Pakistan [2010] UKSC 46 the UK Supreme Court refused to enforce a French IC arbitration award on the grounds that there was no valid arbitration agreement as a matter of French law. The decision is of significance beyond the UK because of its analysis of Article V of the New York Convention and, in particular, the need for the courts of the country where enforcement is sought to revisit the question of jurisdiction initially determined by the tribunal. Enforcement proceedings have also been commenced in France with hearings due to take place in early 2011. Although the English decision is not binding on the French courts, it could prove significant.
Lawyers from Norton Rose Group have co-authored an article on Dallah with lawyers from Ogilvy Renault, soon to be Norton Rose OR. To view this article please visit http://www.nortonrose.com/dallahupdate
Changes to the "without prejudice" rule
In a landmark judgment, Oceanbulk Shipping & Trading SA v TMT Asia Limited and others [2010] UKSC 44, the UK Supreme Court has limited the application of the "without prejudice" rule.
The purpose of the "without prejudice" rule is to assist the parties in a dispute to reach a settlement during the course of proceedings. Any communications (oral or written) between parties aimed at settling a dispute are "without prejudice" and cannot be put before the courts in evidence should such negotiations fail.
The Supreme Court's judgment has created an exception to this rule. Relevant "without prejudice" communications are now admissible as evidence of the true meaning of any provision in the settlement agreement in the event that the parties disagree on that meaning. The judgment highlights the importance of care when negotiating and drafting settlement agreements.
See our guide to drafting settlement agreements for more information http://www.nortonrose.com/settlementguide.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
